In a Decision issued yesterday, the CRTC has bestowed a $10M windfall to MTS Allstream – acknowledging that mistakes sometimes happen. This tale appears to have more twists in it than Lucky Number Slevin, but we’ll rely more on Shakespearean references.
The issue at hand was an error that MTS Allstream made more than 4 years ago when it incorrectly failed to classify some communities into appropriate regulatory bands. Allstream has undergone numerous organizational changes through the years and it had lost some of the regulatory economic depth that it used to have. As it acknowledged, MTS Allstream simply made a mistake.
The CRTC had ruled in September that Allstream would not be entitled to a subsidy toward providing service to high cost areas for the period January 1, 2002 through most of 2003. That proceeding is itself a fascinating one to examine, in that the only party to have fought MTS Allstream was Allstream itself! (Recall that MTS and Allstream were separate, competing companies until 2 years ago).
CRTC Decisions generally have 3 avenues of appeal. You can: go back to the CRTC itself and try to argue that they made a mistake (in the application of law, in the basic facts or argue that the CRTC simply made a mistake); go to the Courts; or, appeal to the Federal Cabinet.
The Decision represents a rare, successful challenge back to the CRTC itself – a process known as an R&V;, since you are asking the CRTC to Review its earlier Decision and Vary the outcome. It is especially interesting because the September ruling was on another Review and Vary application. Today’s Decision represented the CRTC acknowledging that it made a mistake (officially called “substantial doubt as to the correctness of the Commission’s determination in Decision 2005-52“) in how to properly address MTS Allstream’s original mistake.
So it was a successful R&V; of a failed R&V.; Enthroned in the hearts of the CRTC, in applying its qualities of mercy, was a sort of recognition that mistakes happen – by both applicants and regulators alike – and the $10M punishment to MTS Allstream shareholders was disproportionate to the error.
Of final note: TELUS and Bell did not submit comments in this proceeding. Another twist that perhaps demonstrates mercy is mightiest in the mightiest.
Oft expectation fails, and most oft there: it’s good to see that all’s well that ends well.